Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: PitBull who wrote (16956)	5/15/1998 12:01:00 AM
From: Roger Lovett	Read Replies (5) \| Respond to of 31646

After doing some very quick and simple calculations I figure (Unfortunately- because Im long TAVA) that it will be a huge miracle for TAVA to make the .14 First Call Est for 4th qtr. Based on the 3rd qtr, TAVA's net margins were 2.5% on Revs of 11+ mil. TAVA must make 3.5 mil net profit at 25 mil sh (Diluted) outstanding to come in at .14. For this to happen, TAVA must generate atleast 30 mil Revs with a net margin increase to approx 11.5% for this to happen. Now I expect net margins to increase as they convert more towards the y2k side but to get a 460%+ increase in Net Margins in one qtr is asking alot. Not saying it cant be done (hopefully so). Even with the 8-10 mil for May I cant see TAVA doing anymore than 30 mil for the qtr. Im expecting something in the neighborhood of .04 to .09 for 4th qtr. Way below the .14 Est. I believe we will see a downgrade here in the next month or two. I hope my calculations are way wrong and too low but just trying to be realistic. Go TAVA